TMI Blog2014 (6) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... eport submitted by the AO after verification of the expenses claimed by the assessee – thus, there is no infirmity in the order of the CIT(A) on the issue of estimation of assessee’s income by applying net profit rate of 8% - Decided against Assessee. - I.T.A. No. 3773/Mum/2012 - - - Dated:- 22-5-2014 - Shri P. M. Jagtap (AM) And Dr. S. T. M. Pavalan (JM),JJ. For the Appellant : Shri Ashok J. Patil For the Respondent : Shri Rajesh Kumar ORDER Per P. M. Jagtap, AM: This appeal filed by the assessee is directed against the order of ld. CIT(A)- 26, Mumbai- dated 1.3.2012 and the solitary issue arising out of the same relates to the estimation of assessee s income from business. 2. The assessee in the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king the provisions of section 145(3) of the Income Tax act, 1961 (the Act) and estimated the total sales for the year under consideration at Rs.3,60,00,000/- as against Rs.3,08,52,131/- declared by the assessee thereby making an addition of Rs.51,47,869/- to the total income of the assessee. He also disallowed the expenditure claimed by the assessee to the extent of Rs.5,00,000/- for the unverifiable element involved in the expenses claimed by the assessee. Thus, the addition of Rs.56,47,869/- was made by the AO to the income returned by the assessee in the assessment completed u/s 143(3) vide order dated 11.12.2009. 3. Against the order passed by the AO u/s 143(3), the appeal was preferred by the assessee before the ld. CIT(A) and afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period expenses. Still aggrieved by the order of ld. CIT(A), the assessee has preferred this appeal before the Tribunal. 4. We have considered the rival submissions and also perused the relevant material available on record. As rightly submitted by the ld.DR there were specific material defects pointed out by the AO in the books of account maintained by the assessee and keeping in view the same, the ld. CIT(A), in our opinion, was fully justified in upholding the action of the AO in rejecting the books of account. As regard net profit rate of 8% applied by the ld. CIT(A) to estimate the income of the assessee from the business, we find that the same was arrived at as per the average rate of net profit of 13% declared by the assessee in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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